Update on development

Fabian Romania Property Fund Ltd
11 July 2007

11 July 2007


      Fabian Romania Property Fund Limited ('Fabian Romania' or 'Fabian')

Construction contract agreed and sales started at the New Town residential joint
                              venture development


Fabian Romania is pleased to announce that its joint venture development
company, Phoenix Park SRL, has agreed a fixed price build contract with Mivan
Kier for residential apartments at the New Town development in east Bucharest.


The development project is now forecast to involve the construction of more than
635 residential apartments over two phases with an estimated gross development
value in excess of €120 million and total costs, excluding land, of
approximately €80 million. The apartments will be approximately 100 square
metres per unit and are being targeted at middle income families.


Building permits have been obtained and below ground construction works are
ongoing with the first apartments due to be completed in the summer of 2008.


A sales and marketing suite was created in central Bucharest and a full launch
has started. To date, 119 apartments with parking have been released for sale
comprising the first release. City wide newspaper and radio advertising has been
taken to support the launch.


In July 2006, Fabian Romania paid €5.75 million for a 50 per cent. stake in the
development company. Further development funding requirements are expected to be
met by a combination of bank financing and deposits from forward sales. Mivan
Ltd of Country Antrim, Northern Ireland, through its Romanian operating company
Ropotamo Expert SRL is acting as the development manager on the project as well
as being Fabian's joint venture partner.


Mark Holdsworth, Director of Fabian Capital, Fabian Romania's investment adviser
said: 'We are delighted with the progress of the New Town development and our
partners Mivan. With build costs now secured and a full sales launch underway we
have made significant progress since entering into the joint venture last year.
We will provide investors with a further progress report on how well the
apartments are selling at the time of the publication of our second quarter NAV,
expected on Monday 23 July.'


Enquiries:

Fabian Romania:

Mark Holdsworth                                             [phone]


Nominated Adviser:

Deloitte & Touche LLP

James Lewis                                                 [phone]


Broker:

Shore Capital Stockbrokers Limited

Dru Danford                                                 [phone]


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